There were 746 press releases posted in the last 24 hours and 158,465 in the last 365 days.

Fentura Financial, Inc Announces 2015 Profits

  • Net Income before tax and provision for loan losses for the year exceeded levels reported for 2014
  • Book value increased 14.8% over prior year to $12.90
  • Year over year share price appreciated 40.0%
  • Assets grew $51.5 million during the year
  • Loan growth exceeded expectations for the year, growing by $61.6 million

/EIN News/ -- FENTON, Mich., Feb. 11, 2016 (GLOBE NEWSWIRE) -- Fentura Financial, Inc. (OTCQX:FETM) reported pre-tax and pre-provision for loan losses net income for the three months ended December 31, 2015 of $1.6 million compared to pre-tax and pre-provision earnings of $1.5 million and $1.2 million reported for the third quarter of 2015 and the fourth quarter of 2014, respectively.  On an after-tax basis, quarterly earnings of $1.7 million for the fourth quarter of 2015 compared to $1.0 million and $1.1 million for the third quarter of 2015 and the fourth quarter of 2014, respectively.  For the year, Fentura reported pre-tax and pre-provision net income of $6.1 million compared to the $4.6 million reported for 2014.  On an after-tax basis, net income was $4.7 million in 2015 compared to $3.4 million in 2014.      

Ronald L. Justice, President and CEO said, “2015 operating performance represents another year of improved results for Fentura.  I am pleased with the strong improvement in earnings from core operations throughout the year.  Key to our continued success was the significant growth of both loans and deposits and the increase in net interest income from this growth.  We continued to experience solid residential mortgage loan originations, the majority of which were sold in the secondary market.  The gains on sale as well as the revenue from servicing these mortgages contributed positively to our bottom line.  We remain optimistic regarding our markets and the growth opportunity they offer.” 

Balance Sheet

Total assets increased $10.7 million or 2.5% at December 31, 2015 compared to September 30, 2015, ending the year at $445.0 million.  Cash and due from banks decreased 40.3%, to $19.4 million at December 31, 2015 compared to the $32.5 million reported at September 30, 2015.  This decrease was primarily attributable to new loan funding.  Loan balances increased $23.4 million or 6.5% during the same period.  Loans increased from continued efforts to grow the Bank’s client base. During the quarter, the Bank continued to experience growth in both its mortgage and commercial loan portfolios. Loans totaled $381.6 million at December 31, 2015.  Loans increased $61.6 million or 19.2% for the year ended December 31, 2015 when compared to December 31, 2014.  As noted previously, the increase in loans resulted from the Company’s efforts to grow its loan portfolio with new and existing clients.            

Deposits totaled $376.0 million at December 31, 2015, an increase of $7.7 million or 2.1% compared to the $368.3 million reported at the end of the prior quarter.  Deposits increased $48.0 million or 14.7% for the year ended December 31, 2015 when compared to December 31, 2014.  The increase throughout the year occurred in non-interest bearing, interest bearing, and time deposits as the Company continued to grow its consumer, commercial and municipal client base.

Capital

Fentura Financial, Inc. and The State Bank continued to maintain capital in excess of levels considered well capitalized by regulatory agencies. The Bank’s regulatory capital ratios are detailed in the table that follows, and indicate a strong Tier 1 Leverage Capital Ratio at December 31, 2015 and December 31, 2014.   The increase in the Tier 1 Leverage Ratio was primarily due to the increase in capital from operating results, while the modest decline in the risk-based capital ratios year over year is primarily due to changes in the treatment of certain items in the calculation of regulatory capital in 2015 along with the strong overall asset growth.

    December 31,  December 31,  Regulatory
    2015     2014   Well Capitalized
Tier 1 Leverage Capital Ratio    9.90 %   9.83 %   5.00 %
Tier 1 Risk-Based Capital Ratio    11.00     11.80     8.00  
Total Risk-Based Capital Ratio    11.91     13.05     10.00  
                   

Credit Quality

Throughout 2015, the Company continued to benefit from improvement in credit quality.   At December 31, 2015, loan delinquencies to total loans were 0.06% compared to 0.07% at December 31, 2014.  Substandard assets totaled $0.7 million at December 31, 2015, down from $3.2 million reported at December 31, 2014.  The low level of loan delinquencies and substandard assets eliminated the need for additional provisions to the allowance for loan losses throughout all of 2015 and in fact, contributed to a reversal of $1.0 million from the allowance for the year ended December 31, 2015.  Comparatively, for the year ended December 31, 2014 the Bank reversed $450 thousand from the allowance.

Net Interest Income

Net interest income of $3.9 million for the quarter ended December 31, 2015 improved compared to the $3.7 million and the $3.4 million reported in the third quarter of 2015 and the fourth quarter of 2014, respectively.  Interest income improved during the three months ended December 31, 2015, from interest on new loans added during the quarter and throughout the entire year.  Interest expense increased for the quarter ended December 31, 2015 compared to the quarters ended September 30, 2015 and December 31, 2014 because of interest expense on time deposits added during the quarter.   

On a year to date basis, net interest income at $14.5 million in 2015 compared favorably to the $12.9 million reported in 2014.  The year-over-year improvement is due to the increase in interest income from loan growth throughout the year. 

Noninterest Income

Noninterest income was $1.4 million for the quarter ended December 31, 2015 compared to $1.5 million for the third quarter of 2015 and $1.5 million for the fourth quarter of 2014.  The modest decline comparing the fourth quarter results to the prior quarter is attributable to the decline in Wealth Management income in the current quarter based on the level and timing of income from client investment transactions.  The primary variance comparing the current period to the same period in 2014 is the volume of mortgage loans sold in the secondary market and accordingly, the gain on sale and servicing rights from those loans.               

For the twelve months ended December 31, 2015, noninterest income totaled $6.6 million compared to $5.7 million reported for the prior year.  The increase in 2015 is primarily attributable to improved gain on sale and servicing rights from increased volume of mortgage loans sold in the secondary market with servicing rights maintained.     
  
Noninterest Expense

The Company recorded $3.7 million of noninterest expense in the quarter ended December 31, 2015, flat compared to the amount reported in the third quarter of 2015 and a decline from the $3.8 million reported in the fourth quarter of 2014.  The quarterly decrease of the current period compared to the same period in the prior year is primarily attributable to lower loan and collection expenses, as the level of substandard assets improved.  For the year, noninterest expense was $15.0 million in 2015 compared to $14.0 million reported during 2014.  The increase in noninterest expense in 2015 is primarily due to an increase in salary and benefits expense, which increased largely because of mortgage-related and other general employee compensation.   

Fentura Financial, Inc. is a bank holding company headquartered in Fenton, Michigan.  Its subsidiary bank, The State Bank, is also headquartered in Fenton with offices serving Fenton, Linden, Holly, Grand Blanc and Brighton. The Bank offers comprehensive financial services including commercial, consumer, mortgage, trust and financial planning services, and deposit products.  The Bank proudly provides services from its community offices in Genesee, Oakland and Livingston Counties and through on-line and mobile banking services.  More information about The State Bank is available at www.thestatebank.com

CAUTIONARY STATEMENT: This press release contains certain forward-looking statements that involve risks and uncertainties.  Forward-looking statements include, but are not limited to, statements concerning future growth in earning assets and net income.  Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. 


Fentura Financial Inc.          
 
  Dec-15 Sep-15 Jun-15 Mar-15 Dec-14
  Unaudited Unaudited Unaudited Unaudited  
Balance Sheet Highlights  
Cash and due from banks     19,425       32,517       27,003       32,947       19,522  
Investment securities     26,689       27,518       29,204       31,452       33,008  
Commercial loans     233,853       222,560       222,330       211,388       206,914  
Consumer loans     29,014       30,204       27,637       26,620       27,110  
Mortgage loans     118,693       105,353       93,825       89,302       85,945  
Gross loans     381,560       358,117       343,792       327,310       319,969  
ALLL     (3,505 )     (4,439 )     (4,333 )     (4,453 )     (4,406 )
Other assets     20,872       20,655       20,155       26,394       25,489  
Total assets     445,041       434,368       415,821       413,650       393,582  
           
Non-interest deposits     108,102       104,131       110,930       99,390       91,738  
Interest bearing non-maturity deposits     181,703       182,865       157,860       162,719       154,499  
Time deposits     86,166       81,277       82,268       83,322       81,686  
Total deposits     375,971       368,273       351,058       345,431       327,923  
Borrowings     34,775       34,775       34,775       35,251       34,817  
Other liabilities     1,822       499       19       4,134       2,700  
Equity     32,473       30,821       29,969       28,834       28,142  
      445,041       434,368       415,821       413,650       393,582  
BALANCE SHEET RATIOS (unaudited)  
Gross Loans to Deposits   101.49 %   97.24 %   97.93 %   94.75 %   97.57 %
Earning Assets to Total Assets   91.73 %   88.78 %   89.70 %   86.73 %   89.68 %
Securities and Cash to Assets   10.36 %   13.82 %   13.52 %   15.57 %   13.35 %
Deposits to Assets   84.48 %   84.78 %   84.43 %   83.51 %   83.32 %
Loan Loss Reserve to Gross Loans   0.92 %   1.24 %   1.26 %   1.36 %   1.38 %
Net Charge-Offs to Gross Loans   -0.02 %   -0.01 %   0.03 %   -0.01 %   -0.02 %
Leverage Ratio - The State Bank   9.90 %   9.42 %   9.53 %   9.39 %   9.83 %
Book Value per Share $   12.90   $   12.26   $   11.94   $   11.49   $   11.24  
 
Income Statement Highlights - QTD Dec-15 Sep-15 Jun-15 Mar-15 Dec-14
  Unaudited Unaudited Unaudited Unaudited  
Interest income     4,481       4,232       4,005       3,933       3,951  
Interest expense     560       541       529       523       514  
Net interest income     3,921       3,691       3,476       3,410       3,437  
Provision for loan loss     (1,000 )     -        -        -        (450 )
Service charges on deposit accounts     203       202       207       194       232  
Gain on sale of mortgage loans     448       428       655       608       530  
Wealth management income     262       343       304       345       289  
Other non-interest income     533       495       886       461       443  
Total non-interest income     1,446       1,468       2,052       1,608       1,494  
Salaries and benefits     2,209       2,186       2,194       2,237       2,116  
Occupancy and equipment     568       557       554       583       552  
Loan and collection     97       124       154       190       267  
Other operating expenses     860       821       875       767       825  
Total non-interest expense     3,734       3,688       3,777       3,777       3,760  
Net Income before tax     2,633       1,471       1,751       1,241       1,621  
Income Taxes     889       501       595       422       559  
Net Income     1,744       970       1,156       819       1,062  
           
INCOME STATEMENT RATIOS/DATA (unaudited)  
Basic earnings per share $   0.69   $   0.39   $   0.46   $   0.33   $   0.43  
Pre-tax pre-provision earnings     1,633       1,471       1,751       1,241       1,171  
Net Charge offs     (66 )     (33 )     120       (47 )     (74 )
Return on Equity (ROE)   22.00 %   8.81 %   10.78 %   11.40 %   15.26 %
Return on Assets (ROA)   1.62 %   0.89 %   1.10 %   0.81 %   1.10 %
Efficiency Ratio   69.57 %   71.49 %   68.32 %   75.27 %   76.25 %
Average Bank Prime   3.35 %   3.25 %   3.25 %   3.25 %   3.25 %
Average Earning Asset Yield   4.53 %   4.46 %   4.42 %   4.49 %   4.60 %
Average Cost of Funds   0.77 %   0.75 %   0.77 %   0.77 %   0.78 %
Spread   3.76 %   3.71 %   3.65 %   3.72 %   3.83 %
Net impact of free funds   0.21 %   0.19 %   0.19 %   0.18 %   0.18 %
Net Interest Margin   3.97 %   3.90 %   3.84 %   3.90 %   4.01 %
 
Income Statement Highlights - YTD Dec-15 Dec-14   Dec-14 Dec-13
           
Interest income     16,652       14,655         14,655       12,481  
Interest expense     2,152       1,713         1,713       1,454  
Net interest income     14,500       12,942         12,942       11,027  
Provision for loan loss     (1,000 )     (450 )       (450 )     7  
Service charges on deposit accounts     806       882         882       897  
Gain on sale of mortgage loans     2,140       1,339         1,339       1,613  
Wealth management income     1,255       1,228         1,228       996  
Other non-interest income     2,374       2,276         2,276       2,077  
Total non-interest income     6,575       5,725         5,725       5,583  
Salaries and benefits     8,826       7,906         7,906       6,925  
Occupancy and equipment     2,262       2,181         2,181       2,152  
Loan and collection     565       652         652       688  
Other operating expenses     3,324       3,289         3,289       3,471  
Total non-interest expenses     14,977       14,028         14,028       13,236  
Net Income before tax     7,098       5,089         5,089       3,367  
Income Taxes     2,407       1,728         1,728       (5,118 )
Net Income from continuing operations     4,691       3,361         3,361       8,485  
           
INCOME STATEMENT RATIOS/DATA (unaudited)        
Basic earnings per share $   1.87   $   1.35     $   1.35   $   3.44  
Pre-tax pre-provision earnings     6,098       4,639         4,639       3,374  
Net Charge offs     (26 )     43         43       68  
Return on Equity (ROE)   12.73 %   13.03 %     13.03 %   46.78 %
Return on Assets (ROA)   1.11 %   0.94 %     0.94 %   2.71 %
Efficiency Ratio   71.07 %   75.15 %     75.15 %   79.69 %
Average Bank Prime   3.35 %   3.25 %     3.25 %   3.25 %
Average Earning Asset Yield   4.48 %   4.57 %     4.57 %   4.71 %
Average Cost of Funds   0.77 %   0.70 %     0.70 %   0.69 %
Spread   3.71 %   3.87 %     3.87 %   4.02 %
Net impact of free funds   0.19 %   0.17 %     0.17 %   0.15 %
Net Interest Margin   3.90 %   4.04 %     4.04 %   4.16 %


Contact:
Ronald L. Justice
President & CEO
Fentura Financial, Inc.
(810) 714-3902

Primary Logo


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.